Tools · Roth vs Traditional

Roth vs Traditional.
Which wrapper wins?

The Roth vs Traditional decision depends on one question: will your tax rate be higher now or in retirement? This calculator shows the math for your specific numbers, including what happens when you add a Bitcoin allocation inside the Roth.

This page covers US-specific accounts and tax law. Outside the US? The priority order is the same, the account names differ (ISAIndividual Savings Account (ISA)A UK tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition in the UK, TFSATax-Free Savings Account (TFSA)A Canadian tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition/RRSPRegistered Retirement Savings Plan (RRSP)A Canadian tax-deferred retirement account; contributions reduce taxable income and growth is tax-deferred until withdrawal.Full definition in Canada, Super in Australia, etc.).
20%
Roth (after-tax)
$0
100% tax-free withdrawals
Traditional (pre-tax)
$0
Tax owed: $0
Roth + Bitcoin
$0
100% tax-free withdrawals

The key insight: if you expect to be in a higher bracket in retirement than today, Roth wins. Bitcoin inside a Roth amplifies this advantage, high-growth assets benefit most from tax-free compounding because the tax savings grow with the balance.

What this tool assumes
  • Current marginal tax rate applies to the Roth up-front cost.
  • Retirement marginal rate applies to the Traditional at withdrawal.
  • No required minimum distributions modeled.
  • Bitcoin CAGRCompound Annual Growth Rate (CAGR)The average yearly growth rate of an investment, assuming profits are reinvested each year. scenarios are hypothetical; past performance does not predict future returns.

Related

→ Roth IRA Deep-Dive → Backdoor Roth → Roth Conversion Ladder → Bitcoin ETFs in a Roth IRA
Sources
  1. IRS, "Roth vs Traditional IRAIndividual Retirement Account (IRA)A personal retirement savings account with tax advantages. Two main types: Traditional (tax now, pay later) and Roth (pay now, tax-free forever).Full definition comparison" - irs.gov
  2. 2026 IRA contribution limits: $7,500 (under 50), $8,600 (50+) - irs.gov
New to this topic?

See the glossary for plain-English definitions of every term used here.

Not tax advice. Consult a CPA for your specific situation.

HOW THIS IS CALCULATED

This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.